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Bill would let future legislatures use surplus special-revenue funds for Medicaid waivers, early childhood and home visiting

2742565 · March 21, 2025
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Summary

Representative Jane Gillette told the Senate Public Health Committee Friday that House Bill 576 would let future legislatures use two state special revenue accounts for Medicaid waivers, home visiting and early childhood services.

Representative Jane Gillette of House District 77 introduced House Bill 576 to the Senate Public Health Committee Friday. The bill would permit future legislatures to use funds from two state special revenue accounts — the Healthy Montana Kids fund (currently used for CHIP) and the tobacco settlement account — for a set of Medicaid and child-serving programs, including home visiting through maternal and child health, the Big Sky waiver (0-148), the 208 waiver for developmental disabilities, Part C early intervention and Family Education Support Services (FES).

Gillette emphasized the bill does not appropriate money now, but instead expands permissible future uses of two accounts that have experienced rising balances. “This bill is not allocating any funds. It's just giving us the future opportunity to use those funds,” she said, noting the Healthy Montana Kids fund grows from an insurance-premium-based fee and is expected to have a balance she described as increasing over time.

Supporters from disability and provider groups urged the committee to back the measure. Cassie Wick of Ability Montana said the 208 waiver wait list can be 10 to 14 years in some places and that earlier access could keep parents in the workforce and reduce family strain. Jackie Mohler of Family Outreach and Mitch Trepila of Easterseals Goodwill Northern Rocky Mountain said expanded flexibility could help sustain services as clients age and federal Medicaid match rates change. Patrick Madison, CEO of Flathead Industries and board president of the Montana Association of Community Disability Services, said the bill preserves tobacco prevention funding levels but would give future legislatures a responsible mechanism to direct surplus funds to programs with long wait lists.

Gene Hermanson, Medicaid chief financial manager for the Department of Public Health and Human Services, said the Healthy Montana Kids fund is expected to exceed $34 million by the end of the fiscal year and that HB 576 would expand permissible uses to the programs listed in the bill. Rose Hughes of the Montana Health Care Association said the proposal adds flexibility for the Big Sky waiver and related home- and assisted-living supports.

No opponents appeared; the sponsor asked the committee for a “do pass.” The committee closed the hearing without a recorded vote.